| Thu 15 Mar 2001, 0:00 | | Dimension Data Extends Us Footprint With Us$138 Mi |
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DIMENSION DATA HOLDINGS PLC
DIMENSION DATA EXTENDS US FOOTPRINT WITH US$138 MILLION ACQUISITION
London-listed Dimension Data Holdings plc (Dimension Data or the 'Group') has
reached agreement to acquire 100% of Premier Systems Integrators (Premier), a
leading Charlotte, North Carolina-based systems integration firm for US$138
million in cash.
The agreement, effective 1 April 2001, subject to due diligence and approval of
the Boards of both companies and the US anti-trust authorities, will be settled
with an initial cash payment of US$114.5 million with the remainder deferred
over 18 months. Venture capitalists, JP Morgan Partners, Frontenac and Salt
Creek Ventures, who hold 46% in Premier will be paid out in full at closing.
With annual historic revenues of US$152 million and a net asset value of US$21
million, Premier designs, provisions, builds and manages Internet and Intranet
infrastructures that support business-critical applications. The company's
clients include Hughes Network Systems, BMW, Telefonos De Mexico (Tracfone)
Premdor, Georgia Pacific, Net 2000 and Winstar.
Premier will immediately adopt the Dimension Data brand, giving the Group a
strong presence in the Southeastern United States and Texas. Premier reported
profit before tax of US$9.1 million excluding the managed service operating
losses of its wholly owned subsidiary, i-bridge, of US$5.4 million for the
12-month period ended 31 December 2000. i-bridge is expected to turn profitable
in the first quarter of 2001.
Peter Hird, President Dimension Data US says that approximately 30% of
Premier's earnings are derived from networking infrastructure solutions while
the balance of its business is generated from the high-growth server/storage
market and application management. " We view these skills as critical in the
provision of intelligent infrastructure services to our client base. In
addition it affords the Group the ability to leverage these capabilities across
our other geographical regions in the US."
Premier's senior management has signed three-year agreements with Dimension
Data. They will play a vital role in integrating Premier with Dimension Data's
other US operations and introducing Premier's offerings such as the i-bridge
enterprise service provider solution to Dimension Data's global operations.
"Premier is an excellent fit with Dimension Data's global vision in terms of
management culture and skill sets. It has significant depth of technical skills
with over 60% of its 240 employees being billable technical resources," says
Hird.
The company's technology partners include EMC2, Oracle, Cisco, Sun, Hewlett
Packard and Microsoft.
Rob Taylor, Group MD i-Commerce, Dimension Data comments, "Premier has invested
over US$15 million in their managed application and hosting business. This
investment will be instrumental to our goal of extending our Global Services
Operating Architecture (GSOA) offering, which is currently focused in the
network arena, into the i-Commerce space. They also bring sought after skills
in areas such as middleware and database management."
According to Premier founder and Chairman Don Doctor, who takes up
responsibility for Dimension Data operations in Southeastern US, the
acquisition will enable Premier to become part of a global operation with the
ability to deploy innovative solutions around the world.
"One of the factors that made Dimension Data attractive to Premier," says
Doctor, "is their unique GSOA offering. The market is demanding this type of
service now and the combined development efforts, financial wherewithal, and
geographic presence of the two companies will allow us to deliver a robust set
of managed services to our customers sooner.
"This provides tremendous opportunities to our people. Dimension Data's global
footprint and high-end managed service capabilities provide a platform from
which to broaden our offerings to our client base and to tap into new customer
markets," he concludes.
Ends
Note to editors
Dimension Data Holdings plc is a leading global network services and
interactive commerce (i-Commerce) solutions provider, focused on enabling
enterprises, telecommunications service providers and new economy companies to
communicate and transact effectively in an e-enabled environment.
Listed on the London Stock Exchange, Dimension Data is ranked in FTSE 100 and
operates in over 30 countries on six continents. The Group has achieved a
two-year compound annual growth rate in US dollars of 57% in revenue and 36% in
basic earnings per share over the past two years. For more information, please
go to www.didata.com.
Premier Systems Integrators, LLC, designs, builds and manages business-critical
technology solutions. The company delivers a totally customized turnkey
approach to outfitting clients with e-business infrastructure needs.
Headquartered in Charlotte, NC, its client portfolio includes financial,
healthcare, manufacturing, telecommunications and retail firms. Complete
solution descriptions can be found at www.premier-systems.net.
Issued by : Dimension Data
For : Dimension Data (2711) 709-1000
Contact : Peter Hird, President Dimension Data US
Rob Taylor, Dimension Data Group MD i-Commerce
Adrian Liddiard, Vice President ,Business development: US
Dimension Data
: Premier Systems Integrators ( )
Don Doctor, Chairman, Premier Systems Integrators
Press Release
Telephone +27 (0)11 709 1000 Facsimile +27 (0)11 709 1099
Wanderers Building Dimension Data Oval Cnr Sloane Street and Meadowbrook Lane
Epsom Downs Sandton
PO Box 56055 Pinegowrie 2123 South Africa
www.didata.com
Dimension Data Holding plc incorporated in England and Wales at the above
address under the United Kingdom Companies Act 1985
with registered number 3704278 (registered as an external company in the
Republic of South Africa with registered number 2000/009053/10)
